On May 15, 1969, City Investing Company, a large diversified firm based in New York, formed the City Investing Mortgage Trust as a real estate investment trust.

The primary purpose of the trust was to invest in construction and development first mortgage loans. It was planned that the proceeds from the public offering would also be used to acquire existing interim mortgage loans and that a small portion of the proceeds would be invested in real estate equities.

The trust was to be managed by City Security Company, a newly established management company that was 60 percent owned by City Investing and 40 percent owned by Baden Securities Corporation.